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Why xG Technology (XGTI) Stock Is Soaring Today

NEW YORK (TheStreet) -- xG Technology(XGTI - Get Report) stock is spiking on Tuesday after the company announced it had been awarded a subcontractor position from the U.S. Army.

The multiple-award contract will see xG provide communications and network services over a five-year period. The contract is worth up to $497 million. xG teamed with primary contractor Science Applications International Corporation(SAIC - Get Report) on this contract.

"xG has amassed substantial experience in pioneering, developing and deploying new paradigms in RF communications and cognitive radio solutions," xG CEO John Coleman said in a statement.

"We expect the industry-leading innovations we have introduced in spectrum sharing, advanced interference mitigation techniques, performance-enhancing antenna technologies and efficient over-the-air protocols will provide true benefits to both our current and future generations of warfighters," he continued.

By midday, shares had spiked 29.2% to $2.39. Trading volume of 10.9 million shares was more than nine times its three-month daily average.

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